Mondelez International Inc (MDLZ)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.16	5.97	6.45	6.10	6.10
DOH	days	59.30	61.14	56.59	59.88	59.83

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.16
= 59.30

Days of Inventory on Hand (DOH) is a crucial ratio that measures the average number of days a company holds its inventory before it is sold. A lower value indicates efficient inventory management, while a higher value may suggest overstocking or slow inventory turnover.

Analyzing Mondelez International Inc.'s DOH over the past five years, we observe varying trends. In 2023, the DOH decreased to 59.30 days from 61.14 days in 2022, indicating an improvement in inventory management efficiency. This may suggest better control over inventory levels or an increase in sales relative to inventory levels.

Comparing to the previous years, the DOH was 56.59 days in 2021, 59.88 days in 2020, and 59.83 days in 2019. This indicates that in 2023, Mondelez International Inc. was able to reduce the number of days it takes to sell its inventory compared to 2020 and 2019, approaching the efficiency level seen in 2021.

Overall, the decreasing trend in DOH for Mondelez International Inc. from 2022 to 2023 reflects potential improvements in inventory management practices. It is essential for the company to maintain or further reduce its DOH to ensure optimal management of inventory levels and maximize operational efficiency.